A Shareholder Class Action Has Been Filed on Behalf of Purchasers of First American Corporation Securities
June 30, 2008
A shareholder class action lawsuit has been filed in the United States District Court for the Southern District of New York against First American Corporation ("First American" or the "Company") (NYSE:FAF) and certain of its officers and directors on behalf of purchasers of First American common stock, who purchased between April 26, 2006 and November 6, 2007, inclusive (the "Class Period").
The lawsuit alleges the Company violated the Securities Exchange Act of 1934 by making false and misleading statements to the public in its press releases and in its Securities Exchange Commission filings. Specifically, the Complaint alleges that, during the Class Period, First American and certain of the Company's officers and directors engaged in an illegal scheme with Washington Mutual, Inc. ("WaMu") to artificially inflate appraisals of homes for use in connection with mortgages issued by WaMu. The complaint also alleges that, during the Class Period, the Company's management wrongfully reported increased earnings from appraisal fees and inaccurately reassured investors that internal controls were adequate.